- Gaitho says the government now has several sources of funding which are opportunities to boost cash inflows to the Helb.
- The new university funding model has been criticised by students and their parents as discriminatory, inefficient and being wrought with system delays.
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The State has been urged to be more innovative in funding students in universities and other institutions of higher education in the country.
Mount Kenya University (MKU) Pro-chancellor Dr Vincent Gaitho says the government now has several sources of funding which are opportunities to boost cash inflows to the Higher Education Loans Board (HELB) for later access by needy students.
“The first one is the Unclaimed Financial Assets Authority which is holding about Sh45 billion lying idle. Some of these funds can be used to boost HELB but to be repaid later,” he said.
Dr Gaitho who also chairs the KEPSA Education Sector Board, was speaking in a panel discussion on the government’s new university funding model hosted by a local TV station at Machakos University.
The model has been criticised by students and parents as discriminatory, and being wrought with system delays.
The Pro-Chancellor said multinational and other local corporates making and declaring super normal profits should also be encouraged to donate funds, as a form of Corporate Social Responsibility (CSR), to boost HELB’s revolving funding to higher education students.
“Recently, the Ethics and Anti-Corruption Commission (EACC) handed over corruptly acquired assets worth more than Sh5 billion to President William Ruto. These assets can be given to HELB to fund students in institutions of higher learning,” Dr Gaitho said.
In a ceremony held at State House on September 11, EACC’s CEO Twalib Mbarak handed over through the President to the Cabinet Secretary of the National Treasury in trust, titles to the various recovered properties.
The corruptly acquired assets included 35 title deeds measuring 18.71 acres with a total value of Sh5 billion and cash assets totalling Sh511.4 million.
According to Dr Gaitho, government allocation per student sponsored by the state in private universities dropped from Sh70,000 when the program started in 2016 to about Sh40,000 when the project ended.
This forced the private institutions to help the students scramble for bursaries, scholarships and other funds to close the gap.
Today, private universities are not getting money directly from the government but are admitting a lot of students receiving loans from HELB.
The Head of Lending at HELB King’ori Ndegw admitted during the interview that there are delays in disbursing money to universities, colleges and student accounts because of competing demands at the Treasury.
“This might force reporting students to conduct fundraisers (harambees) in the meantime to meet personal needs and requirements by the institutions,” he added.
Dagorreti North MP Beatrice Elachi said a Bill is in process in Parliament to harmonise all the bursaries (from national and county governments, CDF, parastatals and the private sector) currently funding higher education to be centralised. She called on HELB to facilitate students without national identity cards (IDs) to access funding.
“HELB should also make it easier for students to apply for loans,” she pleaded.
However, according to King’ori of HELB, 55,000 new students without IDS have been allowed to use their KCSE index numbers and birth certificates to access funding.
Meru University Vice Chancellor, Prof Romano Odhaimbo, warned students that whereas the fruits of higher education are normally sweet, the path to reap the fruit is tough, depressing and bitter.
He said the State has set up a committee that includes student leaders to discuss the way forward on the new funding model.
The VC said he was supported by well-wishers from primary school to Form Six.
At university, he was funded by the government, while the German Academic Exchange Programme sponsored him for his Masters and PhD education.
He said out of 153,000 students who scored C+ and above in the 2023 KCPE results, 146,000 applied for assistance from the new funding model.
“Public universities are owned by the State; vice-chancellors are only CEOS. University councils are in charge of overall administration, budgets and approval of expenditures. Internal and government external auditors ensure that the funds are not being misused,” he said.
Machakos University’s Deputy Vice-Chancellor in charge of academic affairs, Prof James Mwola, said they were expecting about 3,000 First Years, of whom about 80 per cent had reported by last week.
However, most of the entrants have been placed in Bands 3 and 4 and have been forced to appeal to HELB. “These are genuine cases,” he said, asking students to file correct information in their appeals.
Emmanuel Manyasia, Executive Director at Usawa Agenda accused HELB, the government and Vice Chancellors of being economical with the truth.
“A VC told us recently that although students are being admitted before clearing their fees in full, but they cannot sit for examinations as per the rules of university councils,” he said.
The forum came on the backdrop of the recent roll-out of the new, controversial Variable Scholarship and Loan Funding model for university students, which has brought changes in how university students pay their fees.
Previously, the government was funding university education through a Differentiated Unit Cost model- where its contribution to public universities was expected to be 80 per cent.